In a landmark move poised to transform regional trade and free up billions in locked business capital, the East African Community (EAC) launched the EACBond, a unified customs guarantee instrument allowing traders to move goods across multiple countries with a single bond.
The EACBond, officially unveiled in Kampala, eliminates the costly and cumbersome requirement for traders to post separate national bonds at every border crossing.
Instead, it introduces a regional digital guarantee system that covers cargo transit across participating EAC Partner States starting with Uganda, Kenya, and Rwanda in the pilot phase.
According to EAC Secretary General Hon. Veronica Nduva, the new system is expected to unlock up to USD 2 billion in previously tied-up working capital, empowering businesses to reinvest in operations, create jobs, and drive growth.
“The EACBond frees up traders’ money that was tied up in multiple deposits, this enables reinvestment into expansion and employment, while improving transparency and reducing fraud through integrated tracking systems,” said.
The new bond system is part of a larger digital trade infrastructure that links customs, banks, insurance firms, ports, and cargo tracking through real-time systems.
The platform builds on existing innovations like the Regional Electronic Cargo Tracking System (RECTS), which has already cut transit times by 40% and saved Partner States over USD 250 million in revenue leakage.
By removing redundant financial guarantees, the EACBond offers significant cost savings and faster clearance times for regional businesses.
Traders who once had capital locked up at each border post from Mombasa to Kigali can now use a single, streamlined financial guarantee that covers the entire journey.
Uganda’s Minister of State for EAC Affairs, Hon. James Magonde Ikuya, called the bond a “game changer” for the private sector.
“By eliminating multiple bond requirements, we are cutting unnecessary costs and speeding up trade across our borders, this will empower our business community, boost exports, and strengthen Uganda’s participation in the regional economy,” he said.
The EACBond is expected to stimulate cross-border investment and improve competitiveness by reducing trade costs and operational complexity. It also reinforces government revenue collection through automated compliance systems that reduce the risk of fraud and cargo diversion.
EAC Deputy Secretary General for Customs, Trade and Monetary Affairs, Annette Ssemuwemba Mutaawe, emphasized that the bond represents over a decade of coordinated effort and public-private dialogue.
“This is not just a customs tool, it’s an economic enabler. It reflects our commitment to unlocking regional value chains and creating a seamless business environment for East African entrepreneurs,” she said.
The full rollout will extend to all EAC Partner States, with implementation coordinated by national customs agencies.
As it scales, the EACBond is expected to become a critical lever in deepening the EAC Customs Union and advancing intra-African trade under the AfCFTA framework.